Term
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Definition
| THE SECTION OF AN INSURANCE POLICY THE DETAILS THE PERILS, PERSONS & PROPERTY NOT INSURED. |
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Term
D - DECLARATIONS
I - INSURING AGREEMENT
C - CONDITIONS
E - EXCLUSIONS
D - DEFINITIONS |
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Definition
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Term
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Definition
THIS TRANSFERS THE LIABILITY FOR ONE PERSON TO ANOTHER THAT PROBABLY HAS A GREATER CHANCE OF PAYING
Example: Parent of a child that breaks a window. |
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Term
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Definition
| A FORM OF PUNISHMENT FOR OUTRAGEOUS BEHAVIOR, GROSS NEGLIGENCE OR WILLFULL INTENT |
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Term
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Definition
| USED WHEN CREDIBLE STATISTICS ARE LACKING OR SO VARIED THAT IT IS IMPOSSIBLE TO CREAT A CLASS |
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Term
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Definition
| THE TRANSFER OF A LEGAL RIGHT OR INTEREST TO AN INSURANCE POLICY. ITS ONLY VALID WITH WRITEN CONSENT OF THE INSURER |
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Term
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Definition
| THE INSURED'S OWN PAST LOSS EXPERIENCE ENTERS INTO THE DETERMINATION OF THE FINAL PREMIUM |
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Term
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Definition
| A CONTRACT THAT IS OFFERED ON A TAKE IT OR LEAVE IT BASIS. |
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Term
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Definition
| A FORMULA USED BY INSURANCE COMPANIES TO COMPARE INCOME TO LOSS |
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Term
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Definition
THIS COMMONLY APPLIES IN PRODUCT CASES
Example: A company's defective product. |
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Term
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Definition
| THE INDIVIDUAL(S) WHO'S NAME APPEARS ON THE DECLARATION PAGE |
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Term
ACTUAL CASH VALUE
(A. C. V.) |
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Definition
| REPLACEMENT COST LESS DEPRECIATION |
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Term
Consideration
Offer
Acceptance
Legal Purpose |
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Definition
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Term
| THE TWO CLASSES OF COMPENSATORY DAMAGES |
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Definition
SPECIAL DAMAGES ARE SPECIFIC OUT OF POCKET EXPENSES LIKE MEDICAL, LOSS OF WAGES OR MISC. EXPENSES.
GENERAL DAMAGES COMPENSATE THE INSURED PERSON FOR PAIN & SUFFERING, MENTAL ANGUISH, DISFIGUREMENT AND OTHER SIMILAR TYPES OF LOSSES |
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Term
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Definition
A RATING NOT BASED ON THE ACTUAL LOSS RECORD , BUT ON THE OTHER FACTORS THAT THAT INCLUDE THE PROBABILITY THAT LOSS WILL OCCUR.
Example: Disappearing Deductible or Good Driver Rewards |
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Term
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Definition
| THIS MIRRORS THE UNDERLYING POLICY AND INCREASES THE LIMIT OF LIABILITY BASED ON THE INSURED'S CHOICES. |
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Term
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Definition
| THE ABDICATION (SURRENDER) OF INSURED PROPERTY INTO THE HANDS OF ANOTHER, OR THE POSSESSION OF NO ONE IN PARTICULAR |
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Term
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Definition
A SUDDEN UNPLANED AND UNEXPECTED EVENT THAT IS OUT OF THE INSURED'S CONTROL RESULTING IN UNEXPECTED INJURY OR DAMAGE.
Example: A car crash. |
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Term
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Definition
| A PROVISION IN INSURANCE POLICY THAT PROVIDES ADDITIONAL AMOUNTS OF COVERAGE FOR LOSS AT NO ADDITIONAL PREMIUM |
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Term
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Definition
| A SELF-RATING PLAN UNDER WHICH THE ACTUAL LOSSES DURING THE POLICY PERIOD DETERMINE THE FINAL PREMIUM |
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Term
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Definition
| THE PROCESS OF REVIEWING APPLICATIONS FOR INSURANCE |
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Term
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Definition
| AN ACT OR EVENT THAT IS THE IMMEDIATE OR ACTUAL CAUSE OF LOSS |
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Term
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Definition
| RATE ARE DEVELOPED BY APPLYING A SCHEDULE OF CHARGES AND CREDITS TO SOME BASE RATE. |
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Term
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Definition
| THE SECTION OF AN INSURANCE POLICT THAT INDICATES THE GENERAL RULES OR PROCEDURES THAT THE INSURER AND INSURED AGREED UPON. |
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Term
| INSURANCE AGREEMENT (CLAUSE) |
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Definition
| THE SECTION OF THE POLICY CONTAINING THE INSURER'S PROMISE TO PAY, PARTIES TO THE CONTRACT, EFFECTIVE & RENEWAL DATES, DESCRIPTION OF COVERAGE PROVIDED AND PERILS |
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Term
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Definition
| THE PART OF AN INSURANCE POLICY THAT CLARIFIES THE TERMS USED IN THE POLICY |
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Term
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Definition
| ALWAYS THE FIRST PAGE OF THE INSURANCE POLICY. IT CONTAINS THE BASIC UNDERWRITING INFORMATION LIKE THE NAMED INSURED, ADDRESS, COVERAGE, PREMIUMS AND DESCRIPTION OF INSURED LOCATIONS. |
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